Hyderabad drivers accuse Uber of dishonouring incentive promises

More than 500 drivers claiming to be working for Uber have on Tuesday held protests at its city headquarters under the banner of Telangana Cabs and Bus Operators' AssociationET Bureau | August 26, 2015, 09:31 IST

Deep-pocketed Chinese rivals and tough regulators stand in the way of US car-hailing service Uber's plans to conquer the Chinese market.Weeks after the online taxi hailing company Uber announced committing $50 million for a new centre in Hyderabad primarily to train its drivers, hundreds of cab drivers held protests accusing the company of dishonouring promises pertaining to incentives.

More than 500 drivers claiming to be working for Uber have on Tuesday held protests at its city headquarters under the banner of Telangana Cabs and Bus Operators' Association (TCBOA).

TCBOA president Syed Nizamuddin alleged Uber lured thousands of cab drivers by promising monthly income of about 70,000 but they were not able to earn more than 15,000 owing to drastic cut in incentives and number of trips.

Over the past one month, the incentives per ride for the drivers have been reduced from 225 to 150 in Hyderabad, said Uber driver and car-owner Narayana Rao.

He said the company has been charging Rs 300 towards device charges per week, deducted from the driver's account irrespective of the login, apart from the 20% commission charged by the company per ride.

“Protests have been on as our incentives have gone down drastically along with overall income per month. Those who own the cars are at a loss,“ he told ET .

In a statement after holding nearly a three-hour protest at Uber's city office, Nizamuddin claimed Uber enrolled over 15,000 cab drivers from Hyderabad by paying a joining incentive of 5,000 and another 5,000 for referrals. He alleged that most of the drivers purchased new cabs by selling andor mortgaging their assets.

"Most of the drivers, who were working with different cab operators, have quit their regular jobs and joined Uber with the hope of earning a good amount. However, their dreams were shattered and all of them fell into huge debt traps after Uber cheated them," alleged cab driver Nizamuddin.

Nizamuddian claimed the Uber manager Arman spoke to the agitating drivers and sought a couple of days to resolve the issue. He also threatened to intensify the protests if Uber management fails to resolve the issue by Thursday.

Uber didn't respond to ET's queries seeking its version on the agitation and on the allegations levelled against it by the cab drivers and owners enrolled with it till the report went to print.